Lennar

2017 Performance Final Grade: 78.10/100
2016 Final Grade:77.1/100
B+/B+

32.38/40

Change YoY
Net debt-to-capital 31.6% -180bps
Pretax home building income
(in millions)
$1,269 -5.6%
Total SG&A/Total revenue 20.3% --
Total SG&A
(in millions)
$2,570.9 17.6%
Return on invested capital 5.9% -190bps
Return on equity 10.9% -350bps
Total shareholder return 50.7% --
EPS $3.38 -16.5%

13.81/20

Change YoY
Community count 765 +70
Share of lots optioned to total controlled 21% 0.7%

15.24/20

Change YoY
Home building gross margins 22% -100bps
Sales per month to break even
(per community)
1.38 --
Revenue per employee
(in millions)
$1.4 5.7%
Change YoY
Closings 29,394 10.7%
Sales velocity
(per community per month)
3.3 0.7%
Unit backlog 8,935 17.2%


Total revenue (in millions):$12,646
HB revenue (in millions): $11,035
Debt per share: $29.32
Equity per basic share: $32.81
HB pretax margin: 11.3%
Backlog value (in millions): $3,350.4
Inventory (in millions):$10,860.9
Lot supply (in years): 6.1

Lennar (NYSE: LEN) spent much of the year negotiating and readying for its “strategic combination” with CalAtlantic, which closed early in 2018. But 2017 was also about performance, including deliveries of 29,394 homes (up 11%), new orders of 30,348 homes (up 11%), and revenues of $12.6 billion (up 15%). “Our results … benefitted from strong demand for homes, low unemployment, favorable interest rates, and increased consumer confidence,” says executive chairman Stuart Miller.